This is a continuation of my “Life Hacks” series. In case you missed parts one and two, check them out! Today’s topic is MONEY. Here are a few tips to help you manage what is often a limited resource, especially in this current economy. 1. Save before you spend. Not the other way round. When you…
Today’s topic is MONEY. Here are a few tips to help you manage what is often a limited resource, especially in this current economy.
1. Save before you spend. Not the other way round.
When you get your salary, decide how much you want to save first and put it away, then spend what’s remaining on bills and what have you. It’s more difficult to save when you don’t have a plan. There’ll always be something on which to spend money. Buying a product on sales does not really save you money if you’re buying what you didn’t need in the first place, or you’re buying three when you only needed one. Searching and waiting for sales promo when you need to buy something that is really essential but expensive can also save you money.
2. Buy used stuff when it is practical and cost-effective.
Don’t be trying to spend the money you haven’t earned. The new and good things will come, in a few years. Right now you need to work and save. Cars, clothes, phones, tablets, washing machines etc. Nobody that matter will care if it’s new or used.
3. Don’t be cheap, at least not always.
It is often cheaper to buy 1 expensive item and use it for 10 years, than buy 1 ‘cheap’ item that doesn’t last for a year and you need to re-purchase every now and then.
4. Store food.
Every month you should store a small amount of grains, canned foods, and other food stuff that are not perishable. It might be two packs (bowls) of rice, beans, 1 bottle of oil etc. It might just save your life someday. Ideally, you should have enough storage to last you for 6-24 months. Regularly replace the old stuff with new ones. Eat the old ones and replace them with the new one you just bought.
5. Take lunch to work with you.
That cheap business lunch is not really that cheap when it adds up. Don’t allow co-workers to pressure you into getting the expensive lunch that you know you cannot afford. I’ve fallen into that trap myself a few times. It can be very painful.
6. Save your money in hard currency (dollars, Euro or pounds).
With the recent spiral of the value of the naira, the reason for this should be obvious. Other currencies tend to fluctuate just too much to be safe. Also, do not save your money at home. You never can tell when the ‘owners’ will come to collect it. I’m talking from experience here.
7. DO NOT BORROW.
Debt holds you back. If it is not life or death, just don’t borrow to get it. When you do borrow, pay it off as soon as possible.
8. Do NOT chase money.
Chase opportunities, experiences, and connections instead. Money will come automatically when you’re chasing the right ideas.
That’s it for the life hacks on money and finance. If you have any other hacks that work for you, feel free to share them in the comment section. Look out for the next episode on security hacks. Till then, be safe and be happy.